Internet radio service Pandora is set to acquire music streaming platform Rdio for $75 million.
The deal includes “technology and intellectual property” from Rdio, which will file for bankruptcy and shut down its service in all markets following the acquisition.
Pandora is not purchasing the entire company, but rather its key assets. The company plans to use Rdio technology and staff to provide “an expanded Pandora listening experience by late 2016, pending its ability to obtain proper licenses.”
Pandora CEO Brian McAndrews said the company’s goal was to eventually provide “radio, on-demand and live music” in a single location.
“We seek to be the definitive source for music discovery and enjoyment globally,” he said, adding that Pandora would eventually offer “full on-demand paid subscription.”
In a statement, Rdio said it is “proud to have created an innovative and critically acclaimed global music streaming service.” Rdio attributed the sale to “the state of the streaming marketplace,” and said that Pandora “shares our passion for delivering the best possible music experience to music fans everywhere.”
“The addition of technology, product, IP and people from Rdio will unlock opportunities for Pandora—including speed to market for their on-demand services, global expansion and direct licensing relationships. The result will be the industry’s best combination of streaming radio and subscription songs on demand,” Rdio said.
Back in October, Pandora acquired ticket distribution company Ticketfly for $450 million in cash and stock. [via Variety]